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Loglstics Solutions provides order fulfillment services for dotcom merchants. The company maintaIns warehouses that stock Items carrled by its dot.com cllents. When a client recelves
Loglstics Solutions provides order fulfillment services for dotcom merchants. The company maintaIns warehouses that stock Items carrled by its dot.com cllents. When a client recelves an order from a customer, the order is forwarded to Loglstics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined varlable overhead rate based on direct labor-hours. In the most recent month., 185,000 items were shipped to customers using 8.000 direct labor-hours. The company incurred a total of $27,600 in varlable overhead costs. According to the company's standards, 0.04 direct labor-hours are required to fulfill an order for one item and the varlable overhead rate is $3.50 per direct labor-hour. Required: 1. What is the standard labor-hours allowed (SH) to ship 185,000 Items to customers? 2 What is the standard variable overhead cost allowed (SH SR ) to ship 185,000 ltems to customers? 3. What is the variable overhead spending varlance? 4. What is the variable overhead rate variance and the varlable overhead efficlency variance? (For requirements 3 and 4 , indicate the effect of each varlance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (i.e., zero varlance). Input all amounts as positlve values. Do not round intermediate calculations.)
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